The stock market tumbled again Thursday, with blue chips leading the retreat as the US-China trade war worsened.
The Philippine Stock Exchange Index sank 101.55 points, or 1.3 percent, to 7,475.16 on a value turnover of P8.6 billion. Losers beat gainers, 116 to 78, with 45 issues unchanged.
The trade tiff between the two biggest economies could further slow down orders in the electronics, the Philippines’ biggest export product. Semiconductor and Electronics Industries in the Philippines Inc. president Dan Lachica said exports would likely register a flat growth with the decline in world demand for semiconductors and electronics parts.
International Container Terminal Services Inc., the biggest port operator, slumped 5 percent to P134.50, while conglomerate Ayala Corp. fell 4.8 percent to P838.
JG Summit Holdings Inc. of industrialist John Gokongwei lost 3.2 percent to P56.50, while Jollibee Foods Corp., the largest fast-food chain, declined 2.7 percent to P285.
The rest of Asian markets were mixed Thursday as investors weighed hopes for trade talks against Donald Trump’s ban on US firms from using foreign telecoms equipment, which has been seen as a kick against China.
Investors were jolted in the morning after the president issued an executive order, citing national security grounds, that effectively bars Chinese giant Huawei from the US market.
It was also added to a blacklist restricting US sales to the firm, which will likely ramp up tensions with Beijing as the two economic titans engage in a drawn-out trade war that threatens global growth.
Hong Kong ended flat, although ZTE—another Chinese telecoms equipment provider—shed more than six percent.
Shanghai closed 0.6 percent higher while Sydney put on 0.7 percent and Singapore added 0.2 percent. Wellington and Mumbai were also up.
Tokyo was rooted in the red, however, closing 0.6 percent lower, while Seoul lost more than one percent and Taipei dropped 0.8 percent. Bangkok and Jakarta also slipped.
The Trump administration has for months tried to persuade allies not to allow China a role in building next-generation 5G mobile networks, warning that doing so would result in restrictions on sharing of information with the United States.
The announcement comes after the US last week hiked tariffs on $200 billion of Chinese goods, to which Beijing retaliated in kind, fanning fears their trade war—which seemed all but over just weeks ago—could worsen.
“Earlier, the US Commerce Department had added Huawei to a list of entities that prohibits them from acquiring US-made technology and components without a government license,” said OANDA senior market analyst Jeffrey Halley.
“If that’s not an escalation in trade tensions, then I don’t know what is.”
Regional markets retreated in early trade but some saw a turnaround as the day went on, taking on a positive lead from Wall Street and Europe, where investors cheered reports the White House was planning to delay tariffs on auto imports while seeking agreements with key trading partners. With AFP